Franklin, TN - July 22, 2014 - Franklin Financial Network, Inc., (OTCPK:FRFN) the parent company of Franklin Synergy Bank, today reported unaudited consolidated net income of $2.0 million, or $0.41 basic earnings per common share, for the second quarter of 2014, a 66.7 percent increase when compared with net income of $1.2 million, or $0.32 basic earnings per common share, for the second quarter of 2013. For the six months ended June 30, 2014, consolidated net income was $3.6 million, or $0.72 basic earnings per common share, an increase of 71.4 percent over $2.1 million, or $0.57 basic earnings per common share, for the same period in 2013.
Franklin Financial Network Reports Continued Growth in Second Quarter 2014
Diluted earnings per share for the second quarter were $0.40, compared to $0.31 for the same period in 2013. For the six months ended June 30, 2014 diluted earnings per share were $0.70, compared to $0.56 for the first six months of 2013.
Financial results for MidSouth Bank, acquired by Franklin Synergy Bank on July 1, 2014 are not included in second quarter results.
"The second quarter was another strong quarter of strategic execution for our bank. We remain on target for soundness, profitability and growth," noted Richard Herrington, Franklin Financial Network president. "The growth in net income was even more impressive considering that second quarter earnings were impacted by non-recurring costs related to the bank's recently completed acquisition of MidSouth Bank in Rutherford County. This is our twenty-second
consecutive profitable quarter at Franklin Synergy Bank, and our results demonstrate that the core earnings of our bank continue to grow."
Highlights of Franklin Financial Network's Performance
Balance Sheet Growth and Soundness
- Loans at June 30, 2014 totaled $501.7 million, an increase of $154.6 million from June 30, 2013, for a year-over-year growth rate of 44.5 percent. Loan growth improved in the second quarter to $38.6 million compared with $31.1 million growth in the first quarter of 2014. Residential construction loans accounted for the majority of the loan growth, although small business lending picked up significantly during the quarter.
- Deposits grew to $747.3 million versus $535.5 million at June 30, 2013, an annualized growth rate of 39.6 percent. Since December 31, 2013, total deposits have grown $66.0 million, or 9.7 percent.
- Assets at June 30, 2014 totaled $872.1 million, compared to $618.6 million at June 30, 2013, an annual growth rate of 41.0 percent. Results were driven by growth in the loan portfolio and the investment portfolio. Assets at March 31, 2014 totaled $866.4 million.
- Over the past 12 months, the company's non-performing assets have significantly improved and compose only 0.3 percent of total assets at June 30, 2014. Nonaccrual loans were $1.4 million at June 30, 2014, compared with nonaccrual loans of $2.7 million at June 30, 2013, a decrease of 48.1%, and foreclosed real estate was reduced from $1.9 million at June 30, 2013 to $1.2 million at June 30, 2014, a decrease of 36.8%.
"Franklin Synergy's total revenues reached an historic high in the second quarter, as we continued to build on our successful first quarter results," Herrington said. "We continue to find growth opportunities in our markets as we expand our banking team, adding the best banking and investment professionals in the market."